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Geology

California is situated in the Santander Massif of the eastern cordillera of the Andes Mountains. The massif is comprised of Precambrian gneisses, schists, quartzites and migmatites of the Guyana Shield. Intermediate to granitic instrusives of the Santander Plutonic Group were emplaced during a period of uplift in the Jurassic/Triassic era. Dacite porphyry instrusive stocks and dikes in the immediate areas of mineralization are Tertiary in age. Regional faulting parallels the topographic fabric with the crustal-scale northwest trending Bucaramanga-Santa Marta wrench fault and the northeast trending Rio Cucutilla fault zone defining the principal structural trends.

Mineralization

The gold-silver-copper mineralization in the California Gold Project is part of the same, large mineralizing system localized along a regional northeast-trending fault zone that also hosts the adjacent La Bodega deposit. Mineralization occurs in northeast, northwest and east-west striking, generally steeply north-dipping faulted structures containing high grade veins up to two metres in width. Vein mineralogy includes pyrite, chalcopyrite, sphalerite, and copper sulphides, with traces of silver minerals and sometimes visible gold.

The Machuca zone was previously drill-tested by Galway Resources during 2012. These results were incorporated in various press releases and a Technical Report [1]. A summary of the intercepts is shown below:

The company’s QP has not independently verified Galway’s drill results. At the time of public disclosure, Galway’s drill results were verified and reported by Mr. Mike Sutton, P.Geo. No downhole depths or true widths were publicly reported by Galway for these drill holes. Not all of the mineralized intercepts are within Red Eagle Mining’s properties due to the length and orientation of the drill holes.